The loan will allow Apollo to buy, renovate and rent the properties, said the person, who requested anonymity because the deal hasn’t yet been announced. Apollo, founded in 1990 as a private-equity firm, manages $114 billion of assets and is an investor in Haven Realty Capital LLC, an El Segundo, California-based manager of single-family homes.
The bank line is at least the third by Frankfurt-based Deutsche Bank to money managers who are seeking to take advantage of the recovering housing market following its worst crash since the Great Depression. Private-equity firms have been among the biggest buyers of foreclosed and distressed homes across the U.S. to turn into rentals, helping to turn what has historically been a mom-and-pop business into an institutional asset class.
Deutsche Bank in March led a syndicate of lenders offering Blackstone Group LP (BX:US), the largest U.S. owner of single-family homes with about 26,000, an expansion of its credit line to $2.1 billion from $600 million to buy houses. It also arranged a $100 million loan for asset manager Five Ten Capital LLC the following month. Renee Calabro, a spokeswoman for the bank, declined to comment on the Apollo credit line, as did Melissa Mandel Kvitko, a spokeswoman for New York-based Apollo at public-relations firm Rubenstein Associates.
Haven managed about 1,000 houses in California, Nevada and Illinois as of March.
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